Hello Again,
I will be making a case for a multi month top in the market with more explanation about the techniques i use.... more than normally.
First let's start from the basics.
This is a weekly chart. The lines i have from the top give me 2d dimensional representation when time and price are at certain mathematical points. for example the 1:1 line would indicate when time and price are equal. for example: 90 points in 90 days/weeks/months/ years. the 1:2 would indicate when twice as much time went by as price. 45 points in 90 days/weeks/months... the 2:1 would indicate when price went twice as fast as time. 90 points in 45 days/weeks/months....
From jan 4 22 top till now it has been 75 weeks. we are down 37 from that point. indicating a 2:1 relation represented by the blue line.
The division into quarters of whole numbers existed since the beginning of time and that leads into the next thing. the .25, .33, .5, .66, .75 retracements are very important. the 50% can be viewed as the center of gravity. below bears are in control. above bulls are in control. a break in 50% will many many times lead to a test of 25%. a break above 50% will many many times lead to a move to 75%. i understand everyone uses Fibonacci, but through many years i have found this more reliable.
We have retraced .75% from jan4 22 top to oct 22 22 bottom. spy doesnt indicate this as well as futures because of the cost of the etf. for example, vanguard, voo is .003% over a year. this gets deducted from the etf price and over time it screws up the math. futures hit perfectly and that is what i trade...
the trend from mar 23 bottom till now is 93 days. 93 days is how long summer lasts. everything has a season. bull and bear markets have their own season....
That would be all for this session.
disclaimer. i do have a short position open this morning before writing this article.
I will be making a case for a multi month top in the market with more explanation about the techniques i use.... more than normally.
First let's start from the basics.
This is a weekly chart. The lines i have from the top give me 2d dimensional representation when time and price are at certain mathematical points. for example the 1:1 line would indicate when time and price are equal. for example: 90 points in 90 days/weeks/months/ years. the 1:2 would indicate when twice as much time went by as price. 45 points in 90 days/weeks/months... the 2:1 would indicate when price went twice as fast as time. 90 points in 45 days/weeks/months....
From jan 4 22 top till now it has been 75 weeks. we are down 37 from that point. indicating a 2:1 relation represented by the blue line.
The division into quarters of whole numbers existed since the beginning of time and that leads into the next thing. the .25, .33, .5, .66, .75 retracements are very important. the 50% can be viewed as the center of gravity. below bears are in control. above bulls are in control. a break in 50% will many many times lead to a test of 25%. a break above 50% will many many times lead to a move to 75%. i understand everyone uses Fibonacci, but through many years i have found this more reliable.
We have retraced .75% from jan4 22 top to oct 22 22 bottom. spy doesnt indicate this as well as futures because of the cost of the etf. for example, vanguard, voo is .003% over a year. this gets deducted from the etf price and over time it screws up the math. futures hit perfectly and that is what i trade...
the trend from mar 23 bottom till now is 93 days. 93 days is how long summer lasts. everything has a season. bull and bear markets have their own season....
That would be all for this session.
disclaimer. i do have a short position open this morning before writing this article.